China's Xi says treasures friendship with Vietnam, despite dispute

Chinese President Xi Jinping (L) listens with an earpiece as Chinese Foreign Minister Wang Yi (R) looks on during a meeting with Argentinian President Cristina Fernandez de Kirchner (not pictured) at the Great Hall of the People in Beijing February 4, 2015.REUTERS/Rolex Dela Pena/Pool

BEIJING (Reuters) - Chinese President Xi Jinping on Wednesday told the head of Vietnam's ruling Communist Party he treasured the two nations' traditional friendship, but disagreements needed careful handling to ensure regional stability amid an ugly dispute.

Communist parties rule both countries and trade has swelled to $50 billion (33 billion pounds) annually, but Vietnam has long been suspicious of its giant neighbour, especially over China's increasingly assertive claims to almost the entire South China Sea.